Electric vehicle (EV) sales may be slowing down, but one automaker has just given buyers a powerful new incentive to make the switch. Lucid Motors (NASDAQ:LCID) is known for producing sleek, trendy EVs with high price tags. But recently, the company introduced a new feature that could help more drivers make the switch to electric, even if they can’t afford a Lucid Air.
With Lucid’s new RangeXchange vehicle-to-vehicle (V2V) adapter, drivers will be able to help charge other EVs they pass on the road. At a time when the EV market’s growth prospects look questionable, this development could help spur growth for LCID stock and many other companies.
Lucid is still recovering from a difficult quarter, after reporting disappointing Q3 results. However, the company’s focus on growth and innovation should reassure nervous investors. LCID stock may be down but it certainly is not out.
What’s Happening With LCID Stock
For all the trouble it’s had throughout the past month, this week has been great for LCID stock. As of this writing, it is up 4.5% for the day and shows no signs of slowing down. Today’s pop has pushed it into the green by 10% for the week.
This growth is likely partially due to the recent memorandum of understanding (MOU) that Lucid signed with Saudi Arabian startup Riyadh Air. But investors should be careful to see the bigger picture when it comes to Lucid’s performance. This company is an undervalued growth play in a sector that is likely to rebound as market conditions shift.
Now Lucid is setting itself up to help put more EVs on the road. Data shows that many drivers have expressed concern about making the switch to an EV due to range anxiety. But if more vehicles on the road can help drivers recharge, drivers will likely feel better about driving electric. As Autoweek reports:
“Using the Wunderbox bi-directional charging technology, the RangeXchange adapter will permit a Lucid Air to transfer juice at 9.6 kW to another car, which should translate to about 24 to 40 miles of range per hour, the EV maker notes, depending on environmental factors as well as the receiving vehicle’s energy efficiency.”
Many drivers have long carried jumper cables in their car in case they either need to recharge their battery or pass someone who does. This development could be the modern equivalent to that trend, helping drivers feel more comfortable about driving an EV in an area where charging infrastructure isn’t abundant, especially if other automakers follow Lucid’s example.
The Road Ahead
This specific development isn’t likely to boost LCID stock by much in the short term. But the key takeaway for investors should be that Lucid is still an innovative, trend-setting company. For all the problems it has faced recently, this startup is determined to continue showing investors why it is still worth betting on.
As InvestorPlace contributor Matthew Farley notes, LCID stock may still make some investors nervous. But for those who can stomach some risk, it offers significant upside potential, especially given its current low price points. EV sales are likely to rebound, and when they do, Lucid will help lead the charge forward.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.